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<br />power plant (northeastern Utah) and the <br />Aspinall Unit (western Colorado) of the <br />CRSP, the Upper and Lower Molina <br />powerplants of the Collbran Project <br />(western Colorado), and possibly the <br />Elephant Butte power plant of the Rio <br />Grande Project (New Mexico). Any <br />operational changes to reduce the hourly <br />variation in water releases through these <br />power plants could further reduce the <br />total capacity available to SLCAlIP firm <br />power customers. <br /> <br />SLCAlIP Electric Power <br />Marketing EIS <br /> <br />In addition to serving Reclamation <br />project use loads, Western markets <br />surplus SLCA/IP firm power through <br />long-term wholesale firm electric service <br />contracts to eligible public power utilities, <br />These contracts identify each customer's <br />share of the total SLIP commitment level. <br />The SLIP commitment level was recently <br />reestablished through a public process that <br />concluded with the completion of <br />Western's Electric Power Marketing EIS <br />(EPM-EIS) in January 1996. Initially, <br />Western began the EIS process to <br />determine the environmental impacts of <br />Western's then-proposed changes to the <br />level of long-term finn electric capacity <br />and energy sales from the SLCAJIP. <br /> <br />The EPM-EIS concluded that most <br />impacts to natural and cultural resources <br />would result from hydropower operations <br />rather than from commitment levels. 1bis <br />is due to the fact that commitment levels <br />are only weakly linked to hydropower <br />operations. The EPM-EIS recommended <br />that selection of a high energy' and high <br />capacity commitment level, referred to as <br />the Post-I 989 level. 1bis firm power <br />commitment level establishes an upper <br />limit for Western to provide capacity and <br />energy. This commitment level, outlined <br />in customer contracts which expire in <br /> <br />2004, was approved on October 17, 1996 <br />when the EPM-EIS Record of Decision <br />was signed by Western's Administrator, <br />J.M, Shafer. <br /> <br />Current Western Power <br />Purchasing Practices <br /> <br />The Replacement Resources Pro- <br />cess relates to Western's power purchas- <br />ing authorities and practices. Western has <br />the authority to purchase power to comple- <br />ment the variable nature of Federal <br />hydroelectric power generated at Recla- <br />mation projects. When establishing long- <br />term finn capacity and energy commit- <br />ment leveIs, Western considers many <br />relevant factors, such as hydroelectric ' <br />generator capability, transmission limita- <br />tions, annual snowpack conditions and <br />reservoir end-of-month target storage <br />conditions. <br /> <br />Western regularly purchases power <br />on the spot market on a short-term basis <br />because of shortfalls in hydroelectric <br />generation, variations in the market price <br />of power, and to relieve transmission <br />limitations. 1bis is a standard operating <br />practice of electric utilities and provides <br />Western flexibility to respond to customer <br />needs during times of varying electricity <br />demand. <br /> <br />Contract Amendment on <br />Replacement Power Purchases <br /> <br />Western has worked with a group of <br />its SLCAlIP finn-power customer repre- <br />sentatives to develop and implement <br />contract amendments that accommodate <br />replacement power decisions, and to <br />address other impacts of changed opera- <br />tions at federal power resources. These <br />contract amendments establish a prudent <br />long-term commitment level of sustain- <br />able hydropower (SHP) and address the <br />replacement of unavailable power at GCD <br /> <br /> <br />II <br />